Gold prices today fall from all-time highs, silver drops


Gold dipped in India futures market today after hitting an all-time high on Monday. On MCX, gold slipped to 56,456 per gram, off about 100 from its all-time high of 56,562. Silver futures dipped 0.2% to 69,655 per kg.  In global markets, gold prices inched lower, weighed by an uptick in the dollar. Spot gold was down 0.4% at $1,910.48 per ounce but the losses were capped by hopes of slower interest rate hikes by the Federal Reserve.

The dollar gained 0.2%. A stronger dollar turns gold less attractive to buyers with other currencies.

“On the global side, China’s GDP was in focus. It jumped by 3% year-on-year in 2022, indicating that the Chinese economy has made new headway despite multiple issues. Other economic data from the same region remains better than expected and thus could support a Yuan. Now, all eyes will be on the UK job report and EU ZEW Economic Sentiment, said Amit Pabari, MD of CR Forex Advisors. 

Spot silver in global markets inched 0.8% lower to $24.20.

“The dollar index has recovered from its lows. The U.S. 10-year bond yields also recovered from the lows and crossed 3.50% level. Despite this, gold prices were able to hold above $1900 per troy ounce and silver at $24 per troy ounce levels,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

In India, gold has rallied more than 10% since the start of November on hopes that inflation will slow in US and Fed will downshift its rate hikes. Markets are mostly pricing in a smaller 25-basis-points (bps) increase when the Fed announces its policy decision in February. The U.S. central bank slowed its pace of rate hikes to 50 bps in December after four consecutive 75 bps increases. Since bullion is a zero-yielding asset, lower rates tend to be beneficial for gold as they reduce the opportunity cost of holding the asset.

“Safe haven buying also emerged in gold after U.S. Treasury Secretary Janet Yellen said that the U.S. would likely to hit its statutory debt limit on January 19. We expect gold and silver to remain volatile in today’s session. Gold has support at $1895-1882 while resistance is at $1928-1940. Silver has support at $23.85-23.65, while resistance is at $24.40-24.62. In rupee terms, gold has support at 56,150-55,780, while resistance is at Rs56,680, 56,780. Silver has support at Rs69,150-68,520, while resistance is at Rs70,120–70,680,” he added. (With Agency Inputs)



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